Roth vs. Traditional: Which Retirement Account Fits Your Life?
- Katie Kimball Dyer
- Jan 19
- 2 min read
Updated: Jan 19
When Sam got their first “real job,” they were excited to finally start saving for retirement. But when HR handed over the paperwork, they froze: “Do you want to contribute to a Roth or a Traditional account?”
Sam had no idea what the difference was, and they’re not alone. This is one of the most common questions I hear.
The good news? Once you understand the basics, choosing between a Roth and Traditional retirement account becomes much clearer.
The Basics
Traditional Retirement Accounts
You contribute pre-tax dollars (the money goes in before taxes).
You get a tax break now, reducing your taxable income this year.
You’ll pay taxes later, when you withdraw the money in retirement.
Typically best for: People who expect to be in a lower tax bracket when they retire.
Roth Retirement Accounts
You contribute after-tax dollars (you’ve already paid taxes on it).
There’s no upfront tax break.
But withdrawals in retirement are tax-free (including growth).
Typically best for: People who expect to be in the same or higher tax bracket later, or who value tax-free income in retirement.
Why the Difference Matters
Think of it as a question of when you’d rather pay taxes:
Traditional = later
Roth = now
Both accounts grow tax-advantaged, but the timing of taxes can make a huge difference over decades.
A Special Note for Couples
For LGBTQ+ households or women who may experience income fluctuations over their careers, Roth accounts can provide flexibility and peace of mind. Having some tax-free income in retirement creates breathing room in financial planning.
Try This Today
Look at your current retirement savings.
Are you contributing to a Roth, Traditional, or a mix?
Ask yourself: what tax bracket am I in now, and what might it look like later?
If you’re unsure, talk with a financial professional. Sometimes a blend of both makes the most sense.
Want help figuring out which account best fits your future?
Let’s connect.
Katie’s Key Takeaway
Roth vs. Traditional isn’t about right or wrong, it’s about timing. The best choice is the one that aligns with your tax picture now and the retirement lifestyle you’re building toward.
